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Apr. 16, 2007

Overall, major wireless players such as Intel, Motorola and Sprint Nextel are investing billions in WiMAX.

However, a new research brief done by Diamond Management and Technology Consultants advises traditional cable companies, wireless service providers and other tech segments to seriously reconsider their own strategies.

Diamond's latest survey, "WiMAX Outlook in the U.S. Market", claims that WiMAX could potentially disrupt both the fixed-line market as well as the wireless space.

Hamilton Sekino, a partner in Diamond's telecom said "clearly, not everyone agrees on WiMAX's impact, but the threats and opportunities are so pervasive that every company in the communications space has to consider a competitive response."

Though the report details new opportunities for service providers around the new technology, Sekino warns: "The success of WiMAX hinges on how quickly its ecosystem organizes and collaborates to compete for specific market segments, and develops and markets easy-to-use, affordable end-user applications and devices.

Overall, potential WiMAX players need to accelerate the adoption of the service and attract a critical mass of users before competing technologies can catch up.

However, if they succeed by 2009, we'll see a real battle for the projected 87 million U.S. households using broadband, and the 161 million users of mobile data."

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Source: Wireless Week